Asian food franchises can take various shapes and forms. It is a category as broad as the nations and cultures it encompasses, which includes Chinese, Japanese, Korean, Thai, Vietnamese, Hawaiian, Mongolian, and more.
Here are some major segments that are currently making big waves within the industry.
Fried Chicken
Fried chicken is a significant market segment of Asian food franchises.
Jollibee, specifically, is one of the largest and fastest growing Asian restaurant franchise chains in the world. While the Philippines-based franchise tailors its menu for local tastes in over 1,500 stores around the globe, the menu item it is probably most known for is its “Chickenjoy” fried chicken.
Though the chain is relatively rare in the United States – there are only approximately 70 locations in the country – word is spreading about the fast food franchise’s wares. In fact, Vox Media’s food website Eater named Jollibee’s fried chicken the “best chain fried chicken” in the U.S. after an August 2022 taste test.
Another growing delineation of fried chicken within the Asian food franchise industry is Korean fried chicken, which is the domain of franchises such as Bonchon.
The main difference between American fried chicken and Korean fried chicken is that the batter for Korean fried chicken tends to be lighter and not as heavy. It is also double fried and can be coated with a flavorful sauce.
Barbecue
Barbecue is another noticeable segment with the Asian food franchise industry.
Franchises such as Gyu-Kaku, which brings patrons an experience based on the traditional Japanese yakiniku (grilled barbecue), and L&L Hawaiian Barbecue, which draws upon the islands’ many culinary influences, are expanding the palette of the already popular meat preparation style in the U.S.
In an exploration of the recent fascination with Korean BBQ, which is in many ways applicable to other modes of Asian food, Nico Guerra writes, “While the food is amazing, I believe that people primarily eat at Korean Barbecue restaurants for the authentic experience that they offer. […] The low frequency of communal dining for Americans is one of the key reasons why Korean Barbecue has become so popular in recent years.”
Poké
The Hawaiian dish has been around for centuries, but it’s only been recently that poké bowls have made their way to the mainland mainstream menu.
Traditional poké bowls are made of cubed raw fish seasoned to the consumer’s taste, served with or without sushi rice. Since gaining a larger following, the dish has picked up more contemporary ingredients like quinoa, zucchini noodles, and tomatoes – a point of contention with some Hawaiian food purists.
A couple of the franchises making its way to the front of the pack in this area are Pokéworks and LemonShark Poké.
Bubble Tea
Lately, bubble tea has been taking the American market by storm.
Defined by its bubbles (which are also referred to as boba, pearls, or tapioca), which are typically soft, chewy and a little sweet, the Taiwanese tea drink bubble tea is gaining popularity in the United States.
Also commonly known as boba tea, bubble tea is flavored with milk or fruit (sometimes both) with marble-sized tapioca balls at the bottom. Although, it can be enjoyed with other add-ins such as grass jelly or cheese foam. Bubble tea can be made with all kinds of tea from black tea to jasmine, oolong, matcha, or even fruit-infused tea.
Beyond these, you have the more traditional fast casual franchises that have been a staple of the industry for decades.
For instance, Panda Express is the largest Asian restaurant chain in the United States. It and others, such as Teriyaki Madness, Manchu Wok and Samurai Sam’s Teriyaki Grill, allow customers to mix-and-match from a number of choices to create their meals.
And all of the options already listed don’t include traditional Chinese food, sushi franchises, and so much more. As previously stated, it is an industry that is broad and has endless options for prospective franchisees.
Initial Investment and Opening Costs for Asian Food Franchises
The amount necessary to open a franchise varies depending on the unique business system and execution requirements.
The opening costs for a food franchisee can depend on many factors, including but not limited to the franchise fee, land and building costs, training expenses (such as travel and living expenses, not the actual training courses), grand opening advertising and marketing costs, and more.
One of the most important variables in how much it costs to open an Asian food franchise is the type of franchise being opened and how big it is. The two types of food franchise most commonly offered are traditional and non-traditional. Traditional franchises are usually the biggest option. They are typically standalone buildings where the service of the franchise is the only business offering. Non-traditional franchises are smaller, and typically located within another building like malls, airports, or gas stations.
In addition, food franchises are increasingly being run from a small or shared kitchen facility, referred to a “ghost kitchen,” and is only used for pickup or delivery. Food truck franchise opportunities are also on the rise.
Our franchise profiles will present you with a basic range for the initial investment required to open an Asian food franchise. But when it comes to finding out the details of an initial investment, the franchise disclosure document (FDD) is the best place to look. Franchisors offer itemized estimates in their FDD based upon their experience establishing, and in some cases operating, units.
Franchisors offer estimates in their FDD based upon their experience establishing, and in some cases operating, units. However, prospective franchisees should keep in mind these estimates are just that—an estimate. Prospective franchisees should review the figures presented with a business advisor, taking into consideration their unique circumstances, before making the decision to enter into a franchise agreement.
Ongoing Costs for Asian Food Franchises
Throughout the length of the agreement there are costs for being a part of the franchisor’s business system. These costs include items such as royalty fees, charges for technical support, and continued advertising/marketing costs.
The most common is the royalty fee. Royalty fees are assessed for the continued use of the franchisor’s trademarks and patented processes, along with certain types of operational support. In addition to regularly assessed fees, other fees are charged on an “as needed” basis such as audit fees, or costs for additional, non-mandatory, training.
In addition, it’s important to note that while many initial and ongoing costs are detailed in the FDD, there are some costs inherent to business ownership, like employee wages or utility costs, that aren’t.